Freddie Mac says it issued $65.1 billion of securities through its multifamily risk transfer platform in 2022. The company settled $46.5 billion in K-Deals and forwardly placed $14.7 billion through its When-Issued K-Deal. Freddie Mac Multifamily also increased issuance through its Multi PCs to $11.6 billion, up from $7 billion in 2021, leveraging MSCR Notes and MCIP reinsurance tools for back-end risk transfer.
“In the face of turbulent capital markets, Freddie Mac continued to provide a steady issuance of Multifamily securities throughout 2022,” says Robert Koontz, senior vice president of multifamily capital markets for Freddie Mac. “With the support of our growing investor base, we also continued to diversify, optimize and innovate our risk transfer technologies. These efforts helped Freddie Mac reach new heights in our support of affordable and workforce housing throughout the county.”
Freddie Mac has settled $629 billion in Multifamily securities through its K-Deal and various other risk-transfer offerings since the inception of the program in 2009. In 2022, the company settled $46.5 billion in K-Deals and $14.7 billion through When-Issued K-Deals; $4.6 billion in SB-Deals; $11.6 billion in Multi PCs (including $760 million in P-Deals); $2.3 billion M-Deals, ML-Deals and Q-Deals; $193 million in MSCR Notes; and $4.8 billion of Impact Bonds issuance across various deal types.
In 2022, Freddie Mac Multifamily expanded When-Issued K-Deal offerings, providing investors with an opportunity to purchase certain K-Deal certificates prior to K-Deal settlement.
Freddie Mac grew its Multi PC issuance from $7 billion in 2021 to a record $11.6 billion in 2022. PCs have a single-tier pass-through structure, are fully guaranteed and typically securitize a single mortgage.
The company bolstered its commitment to affordable, quality rental housing, issuing a combined $4.8 billion in securities across its three Impact Bonds offerings: Green, Social and Sustainability.